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Demand and Elasticity
C/E/390. Analysis of AD and AS Curves
- WORDS:
- 2800
- DATE:
- 2009
- PRICE:
- 29.99 GBP
The paper analyses the factors that influence aggregate demand and aggregate supply in an open economy. The examples of the effects of monetary and fiscal policies are reviewed under both fixed and floating exchange rate regimes. It is discovered that fiscal policy is more efficient in the economy with fixed exchange rates while monetary policy is more appropriate and effective under the flexible exchange rates regime.
KEYWORDS: Aggregate demand, aggregate supply, AD curve, AS curve, monetary policy, fiscal policy, elasticity, price level,
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